Best Shares To Buy For Short Term In April 2019
Apr 19, 2019 | 17:02 PM IST
Apr 19, 2019 | 17:02 PM IST
In general, Short-Term investments are considered to be riskier than long term investments. But, short-term investments are important for making more profit from cash savings or liquid assets. Below were the best stocks to buy in March 2019, read Best Short Term Stocks To Buy Today if you are looking to buy shares today.
Hindustan Unilever Ltd. (NSE: HINDUNILVR) (Share Price: Rs.1,737): Potential Buy
Valuation:Overvalued stock with TTM PE of 62x.
Reasons to consider: Hindustan Unilever (HUL) reported robust set of numbers with revenue growth of 11.3% YoY on the back of 10% volume growth. The strong volume growth has been mainly on account of healthy growth witnessed across all segments with addition of new launches which gaining traction. Home care (33% of revenue), personal care (47% of revenue) and foods & refreshments segments (18% of revenue) grew 14.8%, 11% and 9.9%, respectively. Due to healthy sales growth and strong margins, net profit for the quarter grew 8.9% YoY to 1444 crore
Drivers: HUL continued its focus on innovations in Q3FY19 with the launch of RS 10 packs in a number of beauty and personal care products and the relaunched of Lifebuoy & Dove. In the foods & refreshments segment, HUL launched Magnum Hazelnut in select markets. The company is now premiumising its range of water purifiers as demand is shifting towards RO, UV and is planning to gradually phase out its gravity segment water purifiers. On top of all the HUL-GSKCH merger would bring in significant synergy benefits to the company going forward. On the herbal space product (HUL) would be able to deliver superior growth as it has embarked Ayush brand in the mass segment across categories like toothpaste, facewash, shampoo, conditioner, etc.
Financial: In Q3FY19 Net Sales was Rs 9558 crore Vs Rs. 8590 crore in Q3FY18 up 11.3%. Net Profit at Rs. 1444 crore in Q3FY19 up 8.9% from Rs. 1326 crore in Q3FY18, whereas EBITDA stands at Rs. 2046 crore in Q3FY19 vs Rs. 1680 crore in Q3FY18 up 21.8% & EBITDA Margins at 21.4% in Q3FY19 vs 19.6% in Q3FY18 up 185bps.
Mahanagar Gas Ltd. (NSE: MGL) (Share Price : Rs.968): Potential Buy
Valuation: Fairly-Valued stock with TTM PE of 17x.
Reasons to consider: Mahanagar Gas Ltd. (MGL) reported revenues of Rs 752 crore in Q3FY19 and volume growth at 8% YoY for Q3FY19. Whereas, CNG segment grew at 8%YoY, while total PNG growth stood at 7% YoY . Within PNG, domestic volume grew at 13% YoY. After EBITDA/scm of Rs 8.1 in 6MFY19, the same grew to Rs 8.8 in the quarter.
Key Drivers: With MGLs fundamental growth story in place and a positive sectoral outlook, the company can deliver a strong performance with govts continued focus towards the use of cleaner fuels. The Discounted prices of CNG as compared to alternative fuels (petrol, diesel) makes it preferable. And thereby expected to aid the conversions to CNG. Further, to address the lower penetration, management has putting efforts and aiming to accelerate it with recent critical approvals for Raigad regions. Moreover, MGL's revised CapEx guidance to Rs 375 crore suggests its optimistic plans towards penetrating aggressively in tier 1 & tier 2 cities.
ITC Ltd. (NSE: ITC) (Share Price: Rs.306): Potential Buy
Valuation: Fairly-Valued stock with TTM PE of 31x.
Reasons to consider: ITC Limited is a holding company, which is engaged in the marketing of fast moving consumer goods (FMCG). The Company operates through four segments: FMCG, Hotels, Paperboards, Paper and Packaging, and Agri Business. ITC reported a steady quarter with broad-based growth across segments. Cigarette volumes grew a healthy 7.5% with 8.8% EBIT growth as stable prices propelled steady increase in consumer demand. FMCG business reported 41.6% higher EBIDTA led by strong traction in processed foods and lower losses in personal care despite one off losses on business restructuring in Lifestyle retailing. Paperboard business is in fine fettle given gains from steady prices and benign input costs.
Drivers: ITCs vision of reaching Rs 100,000 crore turnover with FMCG contributing Rs 70,000 crore is on the right track with companys slew of new launches recently. It has forayed into packaged non-basmati rice market with Sona Masoori in Bengaluru. In the dairy segment, it has launched four variants of RTD milk beverages under Sunfeast Wonderz brand in Karnataka and Tamil Nadu. ITC is looking to expand its dairy business further by launching paneer in Kolkata and milk beverages on a pan India level in the near term. It has launched pouch milk under Aashirvaad Swasti and curd under Aashirvaad Swasti Dahi. It expanded its noodle portfolio by launching Sunfeast Yippee noodles in four new variants and launched its traditional flavours snack Tedhe Medhe Wakhra Style under Bingo brand.
Financial: The company had reported a Sales of Rs 11227 cr in Q3FY19 Vs Rs 9772 cr in Q3FY18 up 15%, Net profit of Rs 3210 cr in Q3FY19 vs Rs 3090 cr in Q3FY18 up 4%, whereas EBITDA stands at Rs 4325 cr in Q3FY19 vs Rs 3889 cr in Q3FY18 up 11% and EBITDA margin has contracted 654bps to 38.5% in Q3FY19 vs 45.1% in Q3FY18.
BANDHAN BANK LTD (NSE: BANDHANBNK) (Share Price : Rs.592): Potential Buy
Valuation: Over-Valued stock with TTM P/BV of 6.5x.
Reasons to consider:
Bandhan Bank Limited is a commercial bank, which offers a variety of asset and liability products and services designed for micro banking and general banking, as well as other banking products and services. Its asset products consist of retail loans including a substantial portfolio of micro loans, as well as micro, small and medium enterprise (SME) loans and small enterprise loans. Its liability products consist of savings accounts, current accounts and a variety of fixed deposit accounts. It is one of the latest entities to gain a universal bank licence. Bank has strong moats in its high-yielding MFI (micro finance institution) asset book, significantly lower opex vs peers, and notable delivery on liabilities within just 3.5 years of becoming a bank.
Bandhan reported a healthy AUM growth of 46% YoY in Q3FY19, with robust growth in micro-banking 44% yoy and non-micro 64% yoy segments. Liability franchise has also witnessed significant improvement with CASA at 41% increase of 450 bps. Bandhan added 933K customers during Q3FY19 taking its total customer base to 15.3mn (79% micro-banking). NII growth in the quarter was robust 54% YoY as margin held up at 10.5% (+20bps QoQ). In addition, Bandhan bank also continues to maintain strong asset quality with GNPAs and NNPAs in the range of 1.6% and 0.6% respectively. We see the current AUM growth to continue with strong capital adequacy at 26.24% which also one of the highest in private sector banks. Also, the merger synergies with Gruh finance will playout expansionary role for Bandhan Bank in coming quarter. Post-merger, revised RoE of bandhan bank is expected to be sub 23% with RoA at 3.6% on an FY21E basis. Hence, we recommend to BUY the stock at dips.
Financial: Its annouces Q3 result where, Net interest income stood at Rs 1123 cr in Q3FY19 vs Rs 731 cr in Q3FY18. Net advances grew by 47% YoY to Rs 33873 cr. CASA grown by 420bps to 38.5% YoY. Net profit up 10% to Rs 331 cr Vs Rs 300 cr YoY. NIM up by 70bps to 10.3% YoY.